News and Press Releases

Kawasaki Kisen Kaisha, Ltd. ("K" Line) announces that based on recent performance,
the forecast of consolidated financial results for fiscal year ending March 2016 that we announced
on January 29, 2016, has been revised as set forth below.

Also, with respect to this, "K" Line announces estimation of costs arisen from
implementation of business structural reform and other factors in the fourth quarter.

1) Revision of Consolidated Financial Results for the Full Year
(April 1, 2015 - March 31, 2016)

Full Year

Operating revenues (million yen)

Operating income (million yen)

Ordinary income (million yen)

Net income attributable to owners of parent (million yen)

Net incomeper share (yen)

Forecast announced previously on January 29, 2016(A)

1,275,000

11,000

7,000

5,000

5.33

Revised forecast (B)

1,250,000

7,000

1,000

(50,000)

(53.35)

Change (B – A)

△ 25,000

△ 4,000

△ 6,000

△ 55,000

△ 58.68

Change (%)

△ 2.0%

△ 36.4%

△ 85.7%

-

-

Reference: Consolidated results for prior fiscal year (fiscal year ended March 31, 2015)

1,352,421

47,988

48,980

26,818

28.60

2) Reason for the Revision

Under the circumstances of the slowdown in the Chinese economy becoming clearer with adjustment of surplus facilities, and emerging economies having deteriorated with fall in resource prices, the decline in demand expanded the imbalance between supply and demand in shipping capacity. This resulted in more sluggish market than expected in dry bulk business, and also no progress in freight rate restoration in containership business, so we made downward revisions in operating income and ordinary income for the full year as aforementioned. Furthermore, due to the losses arisen from implementation of business structural reform in dry bulk business, plus additional loss on valuation of investment securities, and so on, we made large downward revision in net income attributable to owners of parent for the full year from the previous forecast, which amounts to roughly 50 billion yen loss as aforementioned.

3) Costs of Business Structural Reforms and other losses

aaa) Estimation of Costs

As a result of the stagnation in cargo movement in dry bulk business due to the slowdown in the
Chinese economy becoming clearer, and decline in demand for resources, market conditions reached
their lowest level ever. On the other hand, resource prices and their demand, such as crude oil
and iron ore, show signs of recovery; however, we expect it will take additional time for
improvement in the supply and demand balance. In response to our business environment facing
such structural changes, we determined to perform business structural reform to accelerate the
rationalization of "K" Line Group’s fleet sizes, mainly small and
medium-size vessels to reduce the exposure to risks from market conditions. We estimate roughly
50 billion yen of losses for this purpose, consisting of additional disposal of some of our own
fleet, early termination of charter agreements, impairment loss of some of our dry bulk vessels,
and so on.

bbb) Total amount of loss on valuation of investment securities during Fiscal Year ending
March 31, 2016.

We recorded the loss on valuation of investment securities by the impairment accounting process
during the fourth quarter of fiscal year ending March 31, 2016, for investment securities
classified as “available-for-sale securities” where market value showed no prospects for
recovery as a result of significant declines.

The total amount of the loss on valuation of investment securitiesduring the Fourth Quarter of Fiscal Year ending March 31, 2016
8,365 (January 1, 2016 - March 31, 2016) (million yen)

✼ We have applied the reversal method for valuation of investment securities at the end of
each quarter.

We recognize our business environment is facing structural changes, so we determined to not only
implement business structural reform in dry bulk business but also a fundamental review of
management’s plans for swift response to such changes.

We are currently proceeding with review of the "K" Line Group's medium-term
management plan " Value for our Next Century" released in March 2015,
and are planning to announce a revised management plan at same timing as release of the forecast
for consolidated results for the full year ending March 31, 2017.

Note: The forecasts of financial results set forth in this document were calculated based on
available information at the time of announcement. Actual results may differ from the forecast
because of various factors such as future developments in the business environment.